G20 Leaders Launch Global Biofuel Alliance
- 11 Sep 2023
On 9th September,2023, G20 leaders inaugurated the Global Biofuel Alliance (GBA), a coalition of over 30 nations and international institutions aimed at facilitating the adoption of biofuels, thus unlocking bioenergy accessibility in emerging economies.
Key Points
- Environmental Context: The GBA launch is particularly notable amidst a month marked by several key environmental events, including International Day of Clean Air for Blue Skies (September 7), International Day for the Preservation of Ozone Layer (September 16), and World Environment Health Day (September 26).
- Declaration Mention: The G20 New Delhi Leaders’ Declaration explicitly acknowledges the importance of sustainable biofuels in zero and low-emission development strategies and notes the establishment of the Global Biofuels Alliance.
- Action-Oriented Approach: The GBA announcement exemplifies India's action-oriented positive agenda as the G20 President and its representation of the 'Voice of the Global South,' as highlighted by the Ministry of Petroleum and Natural Gas.
- Diverse Membership: The GBA boasts a diverse membership comprising 19 countries and 12 international organizations.
- G20 and Invitee Countries: Member countries include G20 nations such as Argentina, Brazil, Canada, India, Italy, South Africa, and the US, as well as G20 Invitee countries like Bangladesh, Singapore, Mauritius, and the UAE.
- Non-G20 Nations: Additionally, eight non-G20 countries are part of the alliance, featuring Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland.
- International Institutions: International organizations, including the World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, and World Biogas Association, are integral members.
- Biofuel Production and Consumption: The GBA includes major biofuel producers and consumers, with the USA, Brazil, and India contributing significantly to production and consumption of ethanol.
- Market Growth: The global ethanol market was valued at $99.06 billion in 2022, with a projected CAGR of 5.1% by 2032, expected to surpass $162.12 billion by 2032.
- Capacity-Building and Support: The GBA will provide capacity-building exercises, technical support, and policy lessons-sharing throughout the biofuel value chain.
- Virtual Marketplace: It aims to create a virtual marketplace to connect technology providers with end users, mapping supply and demand.
- Standards and Sustainability: The alliance will facilitate the development, adoption, and implementation of internationally recognized standards, codes, sustainability principles, and regulations to incentivize biofuels adoption and trade.
Benefits for India
- Global Strengthening: GBA, a tangible outcome of India's G20 presidency, will enhance India's global position.
- Export Opportunities: The alliance will offer export opportunities for Indian industries in technology and equipment.
- Industry Enthusiasm: Industry stakeholders anticipate business opportunities, emissions reduction, improved air quality, rural economic development, and energy independence through international cooperation.
